HALISTER1: INDIA RATINGS: Time Technoplast Cut; Indiabulls Real Raised

INDIA RATINGS: Time Technoplast Cut; Indiabulls Real Raised

(Bloomberg) -- Here’s a roundup of Indian co. debt-rating changes.
  • To get this story sent to your inbox real-time, run NI INRATINGS , click on Display & Edit, then Set Alert Delivery
DOWNGRADES
  • Time Technoplast
    • Long-term loan facilities cut to A+ from AA- at Crisil
    • Expects reduction in group’s debt and improvement in credit protection metrics to take longer than earlier anticipated
UPGRADES
  • Bhatia Coke
    • LT fund-based facilities raised to B+ from B at ICRA
    • Cites setting-up of trust and retention account, appointment of concurrent auditor
  • Indiabulls Real Estate Co.
    • LT bank facilities raised to AA-(SO) from BBB+ at Care
    • LT bank facilities of Indiabulls Properties also raised to AA-(SO) from A- at Care
    • Cites credit enhancement in the form of corporate guarantee by Indiabulls Real Estate Ltd.
  • Lalbhai Kalidas
    • LT loan facilities raised to BB from BB- at Crisil
    • Expects sustained improvement in financial-risk profile over the medium term due to equity infusion
  • Sri Sarvaraya Sugars
    • Term loan raised to B+ from B at ICRA
    • Cites low implementation risk associated with capacity expansion plan
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
IBREL IN (Indiabulls Real Estate Ltd)
TIME IN (Time Technoplast Ltd)
1022826D IN (Bhatia Coke & Energy Ltd)
IPIT SP (Indiabulls Properties Investment Trust)
1289134D IN (Lalbhai Kalidas & Co)

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UUID: 7947283

HALISTER1: INSIDE ASIA: Won, Kiwi Lead Sell Off as Fischer Fans Rate Talk

INSIDE ASIA: Won, Kiwi Lead Sell Off as Fischer Fans Rate Talk

(Bloomberg) -- Korean won and the kiwi lead a sell off in regional currencies after Fed Vice Chairman Fischer signaled the possibility of a U.S. rate hike this year, reinforcing earlier comments by other officials.
  • The dollar is strengthening given the consistent messages emerging from Fed’s Dudley, Williams and Fischer, says Moh Siong Sim, FX strategist at Bank of Singapore
    • It’s possible that Fed Chair Yellen, scheduled to speak Aug. 26 at Jackson Hole, will also echo comments by Dudley and Fischer for a rate hike by the end of the year
    • Fischer said over the weekend the economy is close to meeting the central bank’s goals and that growth will pick up
  • U.S. 10-year Treasury yield rose 4 bps last Friday, now little changed at 1.5832%. Australia 10-year govt. yield up 4 bps to 1.902%, while the Chinese bond with same tenor was little changed at 2.71%
  • Yen declines after Sankei newspaper reported over the weekend that BOJ Kuroda said there’s ‘sufficient chance’ for more easing in Sept.
    • Governor Kuroda may be seeking to dampen yen strength and answer doubts about the limits of monetary policy: SMBC Nikko Securities
    • Softer July inflation in Japan will raise odds for more aggressive BOJ easing, CBA says in note today
    • Still, yen will probably climb to a three-year high of 95 over next month as Japan may fail to rally support from other governments for intervention: Citi
  • Yuan drops after PBOC cuts the daily fixing by the most in almost two months
    • China should increase the current fiscal deficit of 3.5%, and a 5% deficit isn’t a big deal, Yicai.com reported yesterday, citing Sheng Songcheng, head of the statistics and analysis department at PBOC. Sheng also said a cut in tax rate is preferable to an interest rate reduction
  • Aussie drops for a second day
    • RBA’s easing bias combined with the Fed’s tightening bias should push AUD toward 0.74, and NZD to 0.70 by year end, Westpac said in a note today
    • Goldman Asset says Aussie may extend its rally toward 80 U.S. cents given positive yields
  • India appoints Urjit Patel as new RBI governor over weekend
    • Indian rupee and bonds may fall initially as markets roll back expectations of policy easing, according to Standard Chartered
  • Won drops as much as 0.9%. Sovereign yield curve steepens, with 10-year yield reaching highest since July 21
  • Southeast Asia currencies all decline
  • Baht drops, with central bank saying it’s concerned further appreciation of the baht will hurt exporters and damage the nation’s economic recovery
  • Rupiah drops for a third session; Bank Indonesia kept 7-day reverse repo rate unchanged at 5.25% on Friday
    • Govt expects growth to improve to 6% or more toward the end of President Widodo’s term, National Planning Minister Brodjonegoro says in an interview today
  • Peso drops vs dollar
    • Philippines will strictly observe budget deficit ceiling at 3% of GDP, Finance Secretary Dominguez says; debt interest payments penciled in at 334.9b pesos for 2017 vs 392.8b pesos in 2016, according to presentation today
    • BSP looking to boost capital by 150b pesos as buffer against open-market operations and FX swings, Deputy Governor Aquino said Friday
  • Singapore dollar drops; Prime Minister Lee had to halt his National Day rally address for an hour after taking ill, before returning to finish speech on Sunday evening
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Moh Sim (ING Groep NV)

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UUID: 7947283

HALISTER1: China Bonds Weigh by Liquidity, Risk Appetite, Inflation: Citic

China Bonds Weigh by Liquidity, Risk Appetite, Inflation: Citic

(Bloomberg) -- Chinese bonds may continue to adjust lower near term as liquidity tightens and risk appetite picks up, Citic Securities fixed income research team writes in a note today.
  • PBOC injected liquidity last week mainly through MLFs, boosting six-month and one-year funding cost to 2.85% and 3% respectively, higher than 10-yr govt bond yield at ~2.7%
  • Risk appetite is buoyed by Shenzhen-Hong Kong stock link, boosting equity market; bond investors may wait for market correction in near term
  • Domestic inflation may rise on lower base after August due to potential rise in oil prices as global production declines while food prices increase on El Nino
  • Suggests investors stay cautious on bonds until direction of global oil prices and domestic inflation is clearer
  • NOTE: Yield of 2.74% govt bond due Aug 2026 rises 2bps to 2.73%
    • Yield of 2.65% July 2021 bond rises 2 bps to 2.55%
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

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HALISTER1: Taiwan to Investigate Mega Bank After U.S. Fine: FSC (Yday)

Taiwan to Investigate Mega Bank After U.S. Fine: FSC (Yday)

(Bloomberg) -- FSC to contact NYDFS and seek explanation from Mega bank, Financial Supervisory Commission said on its website yesterday.
  • Cabinet to hold cross-ministry meetings this week on Mega Bank case
  • FSC to ask Mega give adequate training to chiefs of overseas outlets; says banks should appoint specific personnel in preventing money laundering: statement
  • FSC says it would seek immediate improvements after NYDFS said the lender’s New York executives lacked understanding of local regulations
  • Regulator earlier set guidelines on anti-money laundering and for combating terror financing; regulator will step up implementation of anti-money laundering mechanism
  • Taiwan will start participating in Asia Pacific anti-money laundering mutual review from the fourth quarter of 2018
  • FSC urges financial institutions to change mentality, not to neglect regulations, internal controls in pursuit of profits or cost-cutting
  • NOTE: Taiwan’s Mega fined $180m by NY Dept of Financial Services Link
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
2886 TT (Mega Financial Holding Co Ltd)

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HALISTER1: Further Baht Gains May Derail Economic Recovery, BOT Says

Further Baht Gains May Derail Economic Recovery, BOT Says

(Bloomberg) -- Further appreciation in the baht might derail Thailand’s economic recovery, a concern the central bank “has to monitor closely”, BOT Assistant Governor of Financial Markets Chantavarn Sucharitakul, says in an e-mail interview.
  • Baht’s appreciation may have hurt cash flows of local exporters due to translation losses when their revenues are converted into the local currency, she says
  • The Southeast Asian currency reached 34.50 at the end of last wk, its strongest level since July 2015
    • Baht is currently trading 0.2% lower at 34.690 per dollar
  • Thailand’s bond and equity mkts received inflows so far this year, a reflection of investor sentiment over global recovery and monetary policies of major economies, Chantavarn says
    • “Given that the inflows are externally driven, the reversal process is inevitable and the best that a recipient economy can do is to ensure that it is resilient and sufficiently well balanced to be able to absorb shocks from both sides, be they inflows or outflows,” she says
  • Asked about plans to increase Chinese assets, she says BOT has been gradually adding investments in China’s interbank bond market based on liberalization for official institutional investors
  • NOTE: Thailand’s bond mkt took in YTD net inflows of $10.3b as of Aug. 19 while the equity mkt saw net inflows of $3.04b during the same period, according to data compiled by Bloomberg
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Chantavarn Sucharitakul (Bank of Thailand)

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UUID: 7947283

HALISTER1: FX ASIA/RATES WEEK AHEAD: Jackson Hole, Japan CPI, N.Z. Trade

FX ASIA/RATES WEEK AHEAD: Jackson Hole, Japan CPI, N.Z. Trade

(Bloomberg) -- Asia-Pacific currencies and rates will be bracing for the tone of Janet Yellen’s speech at the Jackson Hole symposium on Aug. 26-27, Bloomberg strategist Mark Cranfield writes.
  • Yellen will need to be hawkish if Fed intends to keep the door open for a rate hike before year-end, as Fed funds futures have yet to fully price in higher rates
    • Pricing for a Sept. hike was 22% as of Aug. 19 while probability of a Dec. rate rise stood at 51%
  • Click here to see major local data due this week
  • Japan 10-year govt yields may rise out of negative yield territory if Yellen points to a hike in December;
    • 10-yr JGB yield currently +1.5bps at -0.75%
    • Click here for JGB chart
  • USD/JPY’s downward extension below 100.00 may be interrupted if core CPI data shows more deflation and speculation builds for a strong BOJ response in Sept.
  • N.Z. trade balance data is unlikely to dislodge NZD 2-yr interest-rate swaps from a bear channel drawn from May 4 high at 2.3150% and June 24 high at 2.3452%
    • NZD/USD continues to find support on dips, even as OIS curve prices for at one more rate cut
  • USD/SGD will be eying Singapore CPI data as a lead indicator for next MAS policy review in October; trend of falling inflation led to an easing in April
  • NOTE: Mark Cranfield is an FX strategist who writes for Bloomberg. The observations he makes are his own.
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

People
Janet Yellen (Federal Reserve System)

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UUID: 7947283

HALISTER1: Taiwan to Form Task Force to Probe Mega Bank Case: United Daily

Taiwan to Form Task Force to Probe Mega Bank Case: United Daily

(Bloomberg) -- Premier Lin Chuan has asked central bank, finance ministry, justice ministry and Financial Supervisory Commission to jointly investigate Mega Bank after it was fined by New York over anti-money laundering law, Taipei-based United Daily News reports, without saying where it got the information.
  • Link to report in Chinese: http://alturl.com/rknsk
  • NOTE: Aug. 19, Taiwan’s Mega fined $180m by New York over anti-money laundering law Link
Alert: HALISTER1
Source: BFW (Bloomberg First Word)

Tickers
2886 TT (Mega Financial Holding Co Ltd)

People
Lin Chuan (Taiwan)

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UUID: 7947283

(2) *PFIZER SAID CLOSE TO $14B DEAL TO ACQUIRE MEDIVATION

*PFIZER SAID CLOSE TO $14B DEAL TO ACQUIRE MEDIVATION

Alerts: HALISTER, HALISTER1
Source: BN (Bloomberg News)

Tickers
PFE US (Pfizer Inc)
GILD US (Gilead Sciences Inc)
MDVN US (Medivation Inc)
SAN FP (Sanofi)
CELG US (Celgene Corp)

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UUID: 7947283

HALISTER: Pfizer Said to Near $14 Billion Deal to Buy Medivation: FT

Pfizer Said to Near $14 Billion Deal to Buy Medivation: FT

(Bloomberg) -- Deal could be announced as early as Monday, FT reports, citing unidentified people close to the talks.
  • Expected to pay ~30% premium to MDVN’s last close
  • Beats other suitors inc. Celgene, Gilead, Sanofi
  • NOTE: MDVN last closed at $67.16
    • Reported offer for MDVN at 30% premium would be ~$87.31: Bloomberg calculation
Alert: HALISTER
Source: BFW (Bloomberg First Word)

Tickers
PFE US (Pfizer Inc)
MDVN US (Medivation Inc)
CELG US (Celgene Corp)
GILD US (Gilead Sciences Inc)
SAN FP (Sanofi)

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UUID: 7947283